Question

Rental fee per hour $40 $$/ride MWTP-D curve 8 Hours of Kayaking for Kayaking 6 hours? What is the total spending for a kayaker for boating for 6 hours? Estimate the consumer surplus (CS) for the kayaker for Kayaking 6 for the kayaker and what is the maxi Understanding the best possible scenario for utility maximization for and its relevant pricing scheme you have learned in this chapter price the kayaker will be willing pay for kayaking for all day of 8 hou 19. whols MWTP = Demand 3. Suppose that a skier skiing in the White Mountains of NH in Jan willing to pay for lift tickets for downhill skiing that reflects the Mw curve as illustrated below: Based c choice 3.1. TH becau 아

Answer 1

Total spending on kayaking for 6 hours is the area of revenue rectangle given by P*Q= 16*6= $96.

Consumer surplus for kayaking at 6 hours is the area between the price of $16 and the demand curve ie the area of triangle given by =1/2*(40-16)*6= 72$.

Since his demand curve and marginal willingness to pay is the same, we can understand that his willingness to pay for 6 hours for 16$ per hour while for $40, he is not willing to have any hours of kayaking. His marginal willingness to pay is declining as he increases the hours and hence he is not willing to pay anything at 8 hours of kayaking.

Or in othe words, when the price is $0, only then he is willing to have 8 hours of kayaking.